I know what are the importance of directory in SEO but I didn't get one thing in my three years career in internet marketing. Why people like to create directories? I know many persons who own more than 200 directories; I don't know why they invest their lots of valuable money for making directories. Is it directory is good source of income? If yes, than which type directory is good for earning and for link building? Niche or General link directory
Directories make most of there money through paid submissions , the more traffic the directories get the higher they will charge for a submission, obviously they'll earn money through other means aswell which will most probably be through the likes of adsense I would imagine.
You are right Ross. They make money through paid submission directories. The more money they get, the more it increases the page rank of the payers.